Monthly Average Balance (MAB) is the sum of all the end of day (EOD) closing balance divided by the number of days in that month.

Most banks in the country charge their customers a penalty fee for non-maintenance of monthly average balance (MAB) in their savings accounts. Monthly Average Balance (MAB) is the sum of all the end of day (EOD) closing balance divided by the number of days in that month. These penalty charges levied by lenders for keeping insufficient bank balance in regular savings account depends on multiple factors, such as the location of bank branch and the degree of shortfall, meaning how far the actual bank balance is from the required average.

Given below are the MAB requirements and penalty charges levied for non-maintenance of MAB by SBI, HDFC Bank, ICICI Bank and Canara Bank:

State Bank of India (SBI)

Customers with a regular savings account in SBI branches located in metro and urban areas are required to maintain a monthly average balance of Rs 3,000, according to the bank's website - sbi.co.in. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 2,000 and Rs 1,000 respectively.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Metro and urban branch (required MAB Rs 3,000)

Charges

Shortfall <= 50%

Rs. 10 + GST

Shortfall > 50-75%

Rs. 12 + GST

Shortfall > 75%

Rs. 15 + GST

Semi-urban branch (required MAB Rs 2,000)

Shortfall <= 50%

Rs 7.50 + GST

Shortfall > 50-75%

Rs 10 + GST

Shortfall > 75%

Rs.12 + GST

Rural (required MAB Rs 1,000)

Shortfall <= 50%

Rs 5 + GST

Shortfall > 50-75%

Rs. 7.50 + GST

Shortfall > 75%

Rs 10 + GST

(As mentioned on SBI's official website)

HDFC Bank

Customers with a regular savings account in HDFC branches located in metro and urban areas need to maintain a monthly average balance of Rs 10,000. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 and Rs 2,500 respectively, according to the bank's website - hdfcbank.com.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Description of Charges

Regular Savings Account

Minimum Average Balance Requirements

Metro / Urban branches: AMB Rs.10,000/-,

Semi-Urban Branches: AMB Rs.5,000/- ,

Rural Branches: AQB Rs.2,500/- or Fixed Deposit of Rs. 10,000 for minimum 1 year 1 day period

Charges applicable on non-maintenance

Balance Non-Maintenance Charges*

AMB Slabs

Metro & Urban

Semi Urban

(in Rs.)

AMB Requirement -Rs 10,000/-

AMB Requirement –Rs. 5,000/-

>=7,500 to < 10,000

Rs. 150/-

NA

>=5,000 to < 7,500

Rs. 300/-

NA

>=2,500 to < 5,000

Rs. 450/-

Rs. 150/-

0 to < 2,500

Rs. 600/-

Rs. 300/-

* plus taxes as applicable

AMB – Average Monthly Balance

AQB Slabs (in Rs.)

Balance Non-Maintenance Charges* (per quarter) - Rural Branches

>= 1000 < 2,500

Rs. 270/-

0 - <1000

Rs. 450/-

*plus taxes as applicable

AQB – Average Quarterly Balance

(As mentioned on HDFC Bank's official website)

ICICI Bank

Customers with a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain a monthly average balance of Rs 10,000. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 and Rs 2,500 respectively, according to the bank's website - icicibank.com.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Minimum monthly average balance (MAB)*

Metro and Urban locations - Rs.10,000

Semi-urban locations - Rs.5,000

Rural locations - Rs 2,000

Gramin locations - Rs.1,000

Charges for non maintenance of minimum monthly average balance (NMMAB)

Metro/Urban/Semi-Urban/Rural locations :

Rs. 100 + 5% of the shortfall in required MAB

Gramin locations : 5% of the shortfall in required MAB

(As mentioned on ICICI Bank's official website)

Canara Bank

Customers with a regular savings account in Canara Bank branches located in metro, urban and semi-urban areas need to maintain a monthly average balance of Rs 1,000. Customers with accounts in rural branches are required to maintain an MAB of Rs 500, according to the bank's website - canarabank.in.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Non maintenance of Minimum balance charges

Modification in charges (Based on Minimum Average Monthly Balance-AMB)

a) METRO / URBAN / SEMI URBAN Branches

b) RURAL BRANCHES

AMB maintained in the account against the stipulated Rs. 1,000/-

Charges per month for violation of AMB

AMB maintained in the account against the stipulated Rs. 500/-

Charges per month for violation of AMB

Rs. 999/- to Rs. 700/-

Rs. 25/- + applicable Service Tax

Rs. 499/- to Rs. 350/-

Rs. 25/- + applicable Service Tax

Rs. 699/- to Rs. 400/-

Rs. 35/- + applicable Service Tax

Rs. 349/- to Rs. 200/-

Rs. 35/- + applicable Service Tax

Rs. 399/- and below

Rs. 45/- + applicable Service Tax

Rs. 199/- and below

Rs. 45/- + applicable Service Tax

(As mentioned on Canara Bank's official website)

However, there are certain accounts where MAB rules are not applicable. These accounts are called as zero balance savings accounts.